Dear readers, applications are now open for the next 6-month T-bill, BS24109A which will go for auction on 9 May 24.
I believe expectations are high for BS24109A if we are to look at the cut-off yields of previous T-bills below:
BS24108N, auction date: 25 Apr 24; cut-off yield of 3.74% per annum
BS24107N, auction date: 11 Apr 24; cut-off yield of 3.75% per annum
BS24106W, auction date: 27 Mar 24; cut-off yield of 3.80% per annum
BS24105X, auction date: 14 Mar 24; cut-off yield of 3.78% per annum
BS24104T, auction date: 29 Feb 24; cut-off yield of 3.80% per annum
For the past 5 consecutive T-bills, the cut-off yield of the 6-month T-bills has consistently exceeded 3.70% per annum, which is really a reasonable yield.
For the last two T-bills, cut-off yields seem to have stabilised at around 3.75% per annum.
What is more, the average 10-year yield of the upcoming Singapore Savings Bonds (Jun 24) has increased 8.8% from 3.06% per annum to 3.3% per annum! I believe the increase in interest rate will similarly spilled over to the Singapore T-bills space!
As a result, expectations are high for the cut-off yields of BS24109N: question is now whether there is a possibility that the cut-off yield can even exceed 3.80% per annum (last seen for the 29 Feb 24 T-bill) with the successful rally of average 10-year interest for upcoming Singapore Savings bonds.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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